The UK has far less forex reserve than Bangladesh

[Black_cats]

The UK has far less forex reserve than Bangladesh​

UK has 1.5 months’ worth of forex reserve for imports while Bangladesh has 6

Dhaka Tribune
Meraj Mavis
September 27, 2022 9:57 AM

Recently, there has been some concern among businessmen, economists, bankers and other stakeholders about the declining foreign exchange (Forex) reserves of Bangladesh, but statistics show that the country’s reserve is in a stronger position than many economically sound countries in the world.

A comparative analysis by Dhaka Tribune revealed that while the reserves of the United Kingdom (UK)-- one of the economic powers of the world, have the strength to bear only one and a half months of its export expenses while Bangladesh’s reserves can cover six months of import bill.

The latest data analysis of Bangladesh Bank and Export Promotion Bureau (EPB) shows that the country's import expenditure has been decreasing over the last few months due to various initiatives by the government.

Last Sunday (September 25), Bangladesh Bank's reserves stood at $36.85 billion, whereas, according to the International Monetary Fund (IMF) data, UK reserves at the end of August were £108 billion.

The import cost of Bangladesh has been decreasing steadily for the last few months, but in the case of the UK, it has started to decrease over the last two months.

According to Bangladesh Bank, LC (Letter of Credit) or import cost payments in August were $5.93 billion, which was $7.42 billion dollars in the previous month, a decrease of $1.49 billion within just a month.

However, in the month of June, the import expenditure was $8.54 billion.

Predicting an export cost of six billion dollars in the coming months, it is possible to meet the import cost for at least six months with the current reserves.

By international standards, a country must have at least three months' worth of foreign exchange reserves to cover import costs.

Economists do not consider the present situation alarming.

Earlier, economic researcher Prof Mustafizur Rahman, distinguished fellow at the Center for Policy Dialogue (CPD), told Dhaka Tribune that the drop in remittance flow has already affected Bangladesh's macroeconomy but it is natural that the reserves will decrease if imports increase.

Still, there is nothing to worry about as the reserves are still satisfactory, he added.

On the other hand, Trading Economics data shows that the UK needs almost £69 billion every month to meet its import bill.

In July, this cost was £68.844 billion whereas, in June and May, UK’s total import cost was £69.995 billion and £70.273 billion respectively.

Former Bank of England’s Deputy Governor, John Grieve said on Monday (September 25) that Britain's foreign exchange reserves would be an ineffective means of trying to prop up a collapsing pound, which hit a record low against the dollar on Monday.

Grieve told BBC radio that reserves were one of two ways of supporting the currency, the other being the interest rates.

"We don't have very many reserves compared to the scale of currency markets. So I think that's not seen as an effective weapon," Grieve said.

Evening Brief

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[bluesky]

The UK has far less forex reserve than Bangladesh​

UK has 1.5 months’ worth of forex reserve for imports while Bangladesh has 6

Dhaka Tribune
Meraj Mavis
September 27, 2022 9:57 AM

Recently, there has been some concern among businessmen, economists, bankers and other stakeholders about the declining foreign exchange (Forex) reserves of Bangladesh, but statistics show that the country’s reserve is in a stronger position than many economically sound countries in the world.

A comparative analysis by Dhaka Tribune revealed that while the reserves of the United Kingdom (UK)-- one of the economic powers of the world, have the strength to bear only one and a half months of its export expenses while Bangladesh’s reserves can cover six months of import bill.

The latest data analysis of Bangladesh Bank and Export Promotion Bureau (EPB) shows that the country's import expenditure has been decreasing over the last few months due to various initiatives by the government.

Last Sunday (September 25), Bangladesh Bank's reserves stood at $36.85 billion, whereas, according to the International Monetary Fund (IMF) data, UK reserves at the end of August were £108 billion.

The import cost of Bangladesh has been decreasing steadily for the last few months, but in the case of the UK, it has started to decrease over the last two months.

According to Bangladesh Bank, LC (Letter of Credit) or import cost payments in August were $5.93 billion, which was $7.42 billion dollars in the previous month, a decrease of $1.49 billion within just a month.

However, in the month of June, the import expenditure was $8.54 billion.

Predicting an export cost of six billion dollars in the coming months, it is possible to meet the import cost for at least six months with the current reserves.

By international standards, a country must have at least three months' worth of foreign exchange reserves to cover import costs.

Economists do not consider the present situation alarming.

Earlier, economic researcher Prof Mustafizur Rahman, distinguished fellow at the Center for Policy Dialogue (CPD), told Dhaka Tribune that the drop in remittance flow has already affected Bangladesh's macroeconomy but it is natural that the reserves will decrease if imports increase.

Still, there is nothing to worry about as the reserves are still satisfactory, he added.

On the other hand, Trading Economics data shows that the UK needs almost £69 billion every month to meet its import bill.

In July, this cost was £68.844 billion whereas, in June and May, UK’s total import cost was £69.995 billion and £70.273 billion respectively.

Former Bank of England’s Deputy Governor, John Grieve said on Monday (September 25) that Britain's foreign exchange reserves would be an ineffective means of trying to prop up a collapsing pound, which hit a record low against the dollar on Monday.

Grieve told BBC radio that reserves were one of two ways of supporting the currency, the other being the interest rates.

"We don't have very many reserves compared to the scale of currency markets. So I think that's not seen as an effective weapon," Grieve said.

Evening Brief

Everything that made headlines today

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Like our BAL brats in the PDF, newspapers in BD nowadays print something that compares oranges with apples.

However, BAL brats here may/ should ask the GoB to print money worth of a few trillion Taka and send it the UK to help that poor country to stand on its own feet and ask its kitchen boys to return to BD, a rich country already,

It will certainly replenish shortage of foreign exchange in the UK banks. As far as I understand, BDT is also a foreign currency in London.

Am I wrong?

 

[tower9]

It is crazy how rapid Britain is collapsing.

 

[INS_Vikrant]

And now they don't have a bunch of far away poor countries whose wealth they can extract to keep their economy afloat

 

[bluesky]

And now they don't have a bunch of far away poor countries whose wealth they can extract to keep their economy afloat

Poor countries in the Sub-continent do not have to worry about UK's economic status. Note how much money India is in debt in 2022.​

"External Debt in India increased to 620,700 USD Million in the first quarter of 2022 from 614,900 USD Million in the fourth quarter of 2021".​

 

[Beast]

It is crazy how rapid Britain is collapsing.

Becos of their aggressive anti- China policy stance and blindly following every US instructions.

 

[Bossman]

Stupid article from someone who doesn’t understand economics. Most developed nations have zero reserves as they don’t need any. Stupid BDs feeling good on lies again.

 

[Leishangthem]

Umm the brits hedged everything on the US empire,they honestly don't care,these parasites will go to war to protect US hegemony,all the global south who have to toil for all their gains,should coalesce to prevent such unfair leverage by certain western nation .

 

[mb444]

Stupid article from someone who doesn’t understand economics. Most developed nations have zero reserves as they don’t need any. Stupid BDs feeling good on lies again.

There is only one country who does not need a reserve because its currency is the currency of international trade... that is USA and Dollar. The Fed can just print money without raising domestic inflation.

The next tier is UK and Japan whose currencies are also used for international trade and who has some limited capacity to print money without impacting inflation (keeping Euro out of this conversation as its a collective currency with material diffences).

Everyone else does need to maintain reserves to trade because their currency wont be easily convertible.

Becos of their aggressive anti- China policy stance and blindly following every US instructions.

No current economic issues have nothing do with china. China is not a political or economic issue here.

 

[Destranator]

What a stupid article. For a country like Bangladesh with a currency that has zero external acceptance and an export basket heavily skewed towards one category of products (garments), even a forex reserve worth 12 months of import bills is not "safe".

 

[tower9]

Becos of their aggressive anti- China policy stance and blindly following every US instructions.

Their China policy is marginal. Their demise is due to the disastrous management of their elites.

 

[epebble]

The UK has far less forex reserve than Bangladesh​

UK has 1.5 months’ worth of forex reserve for imports while Bangladesh has 6

Dhaka Tribune
Meraj Mavis
September 27, 2022 9:57 AM

Recently, there has been some concern among businessmen, economists, bankers and other stakeholders about the declining foreign exchange (Forex) reserves of Bangladesh, but statistics show that the country’s reserve is in a stronger position than many economically sound countries in the world.

A comparative analysis by Dhaka Tribune revealed that while the reserves of the United Kingdom (UK)-- one of the economic powers of the world, have the strength to bear only one and a half months of its export expenses while Bangladesh’s reserves can cover six months of import bill.

The latest data analysis of Bangladesh Bank and Export Promotion Bureau (EPB) shows that the country's import expenditure has been decreasing over the last few months due to various initiatives by the government.

Last Sunday (September 25), Bangladesh Bank's reserves stood at $36.85 billion, whereas, according to the International Monetary Fund (IMF) data, UK reserves at the end of August were £108 billion.

The import cost of Bangladesh has been decreasing steadily for the last few months, but in the case of the UK, it has started to decrease over the last two months.

According to Bangladesh Bank, LC (Letter of Credit) or import cost payments in August were $5.93 billion, which was $7.42 billion dollars in the previous month, a decrease of $1.49 billion within just a month.

However, in the month of June, the import expenditure was $8.54 billion.

Predicting an export cost of six billion dollars in the coming months, it is possible to meet the import cost for at least six months with the current reserves.

By international standards, a country must have at least three months' worth of foreign exchange reserves to cover import costs.

Economists do not consider the present situation alarming.

Earlier, economic researcher Prof Mustafizur Rahman, distinguished fellow at the Center for Policy Dialogue (CPD), told Dhaka Tribune that the drop in remittance flow has already affected Bangladesh's macroeconomy but it is natural that the reserves will decrease if imports increase.

Still, there is nothing to worry about as the reserves are still satisfactory, he added.

On the other hand, Trading Economics data shows that the UK needs almost £69 billion every month to meet its import bill.

In July, this cost was £68.844 billion whereas, in June and May, UK’s total import cost was £69.995 billion and £70.273 billion respectively.

Former Bank of England’s Deputy Governor, John Grieve said on Monday (September 25) that Britain's foreign exchange reserves would be an ineffective means of trying to prop up a collapsing pound, which hit a record low against the dollar on Monday.

Grieve told BBC radio that reserves were one of two ways of supporting the currency, the other being the interest rates.

"We don't have very many reserves compared to the scale of currency markets. So I think that's not seen as an effective weapon," Grieve said.

Evening Brief

Everything that made headlines today

www.dhakatribune.com

News to the author: The country with no reserves at all: U.S.A. In fact, has more than $20 Trillion debt. U.S.A. has had no reserves for nearly 100 years.

 

[casual]

There is only one country who does not need a reserve because its currency is the currency of international trade... that is USA and Dollar. The Fed can just print money without raising domestic inflation.

The next tier is UK and Japan whose currencies are also used for international trade and who has some limited capacity to print money without impacting inflation (keeping Euro out of this conversation as its a collective currency with material diffences).

Everyone else does need to maintain reserves to trade because their currency wont be easily convertible.


No current economic issues have nothing do with china. China is not a political or economic issue here.

No country will sell oil to UK for pound. UK will have to buy dollars (or yuan) to import energy.

 

[fallstuff]

The UK has far less forex reserve than Bangladesh​

UK has 1.5 months’ worth of forex reserve for imports while Bangladesh has 6

Dhaka Tribune
Meraj Mavis
September 27, 2022 9:57 AM

Recently, there has been some concern among businessmen, economists, bankers and other stakeholders about the declining foreign exchange (Forex) reserves of Bangladesh, but statistics show that the country’s reserve is in a stronger position than many economically sound countries in the world.

A comparative analysis by Dhaka Tribune revealed that while the reserves of the United Kingdom (UK)-- one of the economic powers of the world, have the strength to bear only one and a half months of its export expenses while Bangladesh’s reserves can cover six months of import bill.

The latest data analysis of Bangladesh Bank and Export Promotion Bureau (EPB) shows that the country's import expenditure has been decreasing over the last few months due to various initiatives by the government.

Last Sunday (September 25), Bangladesh Bank's reserves stood at $36.85 billion, whereas, according to the International Monetary Fund (IMF) data, UK reserves at the end of August were £108 billion.

The import cost of Bangladesh has been decreasing steadily for the last few months, but in the case of the UK, it has started to decrease over the last two months.

According to Bangladesh Bank, LC (Letter of Credit) or import cost payments in August were $5.93 billion, which was $7.42 billion dollars in the previous month, a decrease of $1.49 billion within just a month.

However, in the month of June, the import expenditure was $8.54 billion.

Predicting an export cost of six billion dollars in the coming months, it is possible to meet the import cost for at least six months with the current reserves.

By international standards, a country must have at least three months' worth of foreign exchange reserves to cover import costs.

Economists do not consider the present situation alarming.

Earlier, economic researcher Prof Mustafizur Rahman, distinguished fellow at the Center for Policy Dialogue (CPD), told Dhaka Tribune that the drop in remittance flow has already affected Bangladesh's macroeconomy but it is natural that the reserves will decrease if imports increase.

Still, there is nothing to worry about as the reserves are still satisfactory, he added.

On the other hand, Trading Economics data shows that the UK needs almost £69 billion every month to meet its import bill.

In July, this cost was £68.844 billion whereas, in June and May, UK’s total import cost was £69.995 billion and £70.273 billion respectively.

Former Bank of England’s Deputy Governor, John Grieve said on Monday (September 25) that Britain's foreign exchange reserves would be an ineffective means of trying to prop up a collapsing pound, which hit a record low against the dollar on Monday.

Grieve told BBC radio that reserves were one of two ways of supporting the currency, the other being the interest rates.

"We don't have very many reserves compared to the scale of currency markets. So I think that's not seen as an effective weapon," Grieve said.

Evening Brief

Everything that made headlines today

www.dhakatribune.com

Silly article , UK currency is part of IMF basket of currency , while Taka is not !

 

[Homo Sapiens]

Stupid article from someone who doesn’t understand economics. Most developed nations have zero reserves as they don’t need any. Stupid BDs feeling good on lies again.

Only United States can run without forex reserves as they are the one print US Dollar. All other countries, poor or rich need to maintain sufficient forex reserves to maintain international trade including UK.